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LCU Board Admin Report - Energy ym Ci1v of Las Cruces' MOUNTAINS OF OPPORTUNITY Las Cruces Utilities Board of Commissioners LCU ' s Role in Energy Transition July 9, 2020 GRQ UTILITIES City of Las Cruces Understanding Energy Transition and LCU ■ Climate Action Plan presented to City Council 4/27/2020: Included proposed strategies for Council consideration, which will impact the Natural Gas Utility ■ State Energy Transition Act ■ Natural Gas Utility Impact Considerations: Regional obligations of services to = 407000 ❑ Industrial obligations to NASA, NMSU, and Zia Gas ❑ Economic development and industry recruitment impact ❑ Financial Obligations related to debt service 0 Las Cruces Greenhouse Gas Emissions by Sector Solid Waste, 7% Wastewater Treatment, 0.3% Industrial Processes and Commercial and Industrial Product Use, 1% Buildings, 21% Residential Buildings, 17% Transportation, 53% 2018 data - Las Cruces Climate Action Plan of 4/27/2020 (only references 125) Prime Sources of Carbon Emissions in the US Agriculture 9% Commercial & Residential _ 12% Transportation Electricity J�-- Total Emissions in 2017 = 6,457 Million Metric Tons of CO2 equivalent https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions US Natural Gas Consumption by Sector transportation 3% commercial 1�¢�0 electric power 3�¢'0 residential 17% ind usWul 34% � NkrL-_Trarnpnr3tion includes pipeline anus d distribution meand vehicle fuel_ e;aSource: U.S. Energy Mnnnrstinn Adrriinis ration, k4onfdy EnaW Review,June 2019 Local Natural Gas Carbon Emissions ■ Quantify current natural gas utility emissions within city limits at 2020 levels ■ Incremental growth from new connections per year: 668 new connections 24,764 dekatherms or 1 ,326 metric tons ■ Careful planning mitigates impact of future growth 0 Apply Current & Potential Offsets ■ Co-Generation projects ■ Existing tree carbon sequestration: Dona Ana pecan orchards remove = 83,300 metric tons ■ Urban tree canopy: 25 medium sized trees sequester =1 metric ton of carbon annually ■ East Mesa Water Reclamation Facility Solar PV System ■ Purchased Power Agreements 0 Mitigating Local Carbon Emissions ■ Offset future growth-related emissions: Promote and support energy efficiency programs Carbon sequestration, offset, or reduction projects Partner with researchers for development of carbon scrubbing or reduction technologies and research Develop solar PV for Utilities operations and City facilities Expand PV generation (1 .5 Kw-DC system displaces -1 metric ton of carbon annually) 0 Efficiency & Use - Natural Gas vs . Electricity ■ Energy use of natural gas in ■ 70% of new homeowners homes & buildings is three prefer gas for water heating, times more efficient than cooking and space heating. electric energy from the grid. I- � � I � 3 SOLD , 0 i Economic Impact — Natural Gas vs . Electricity ■ Electrification of householdTypical CLC Residential Monthly Winter Energy Bill $180.00 water and space heating $160.00 $154.03 would increase typical city residences' winter energy bill $140.00 by $90 per month $120.00 ■ In addition to initial PV system $100,00 investment $8000 $63.40 ■ Natural Gas Utility can $60.00 incentivize or support solar $40.00 production $20.00 $0.00 ■Electric and Gas ■AII Electric Appliance end-use data source: EIA 2018 Annual household site end-use consumption in the U.S, Table CE3.1) m Source: EIA Annual household site end-use consumption in the U.S.—totals and averages, 2015 Mountain South Region Questions 0GR(j my at gas cruces m